January 15, 2007—Paced by a recovering market for nonresidential projects and expanding housing activity, billings at US architecture firms increased 11 percent between 2002 and 2005 to reach $28.7 billion annually, according to a new AIA report. The total construction value of projects that architecture firms directly designed approached $360 billion, accounting for almost three percent of overall US Gross Domestic Product.
These findings are from The American Institute of Architects’ (AIA) Business of Architecture: 2006 AIA Firm Survey, which is conducted every three years to examine issues related to business practices of AIA member-owned architecture firms. The study also revealed continued improvement in diversity in the profession and an increase in the number of “green” design projects.
“While the residential design category posted the strongest gains in share of firm activity during this period, the institutional market—led by the health care and education sectors—remains the largest source for architecture services,” said survey co-author, AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “State and local governments were the leading architecture clients, followed closely by developers/construction companies. The most common project delivery method remains traditional design-bid-build, which accounts for nearly 60 percent of project activity at architecture firms.”
The Top 5 sectors served by architects in 2005 were: health care (14.3% of firm billings), office (11.7%), education (K-12)(11.1%), multifamily residential (10.7%), and education (college/ university)(7.7%).
For additional details on the survey, visit AIA. The survey is available at no charge to AIA members and can be ordered by calling Information Central at 800/242-3837, option 1.
